ACC 421 Course Great Wisdom / tutorialrank.com ACC 421 Course Great Wisdom / tutorialrank.com | Page 11

3. GAAP is comprised of:
4. The authoritative status of the conceptual framework is as follows.
5. The objective of financial reporting places most emphasis on:
6. General-purpose financial statements are prepared primarily for:
7. Economic consequences of accounting standard-setting means:
8. The expectations gap is:
CA 1 – 14 (Securities and Exchange Commission)The U.S. Securities
and Exchange Commission (SEC)was created in 1934 and consists of
five commissioners and a large professional staff. The SEC
professionalstaff is organized into five divisions and several principal
offices. The primary objective of the SEC is tosupport fair securities
markets. The SEC also strives to foster enlightened stockholder
participation in corporatedecisions of publicly traded companies. The
SEC has a significant presence in financial markets, thedevelopment
of accounting practices, and corporation-shareholder relations, and
has the power to exertinfluence on entities whose actions lie within
the scope of its authority.
(a) Explain from where the Securities and Exchange Commission
receives its authority.
(b) Describe the official role of the Securities and Exchange
Commission in the development of financial accounting theory and
practices.
(c) Discuss the interrelationship between the Securities and Exchange
Commission and the Financial Accounting Standards Board with
respect to the development and establishment of financial accounting
theory and practices.